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13. SML and WACC An all-equity firm is considering the following projects: PROJECT BETA EXPECTED RETURN W .75 11% X .95 13% Y 1.15 14%

13. SML and WACC An all-equity firm is considering the following projects: PROJECT BETA EXPECTED RETURN W .75 11% X .95 13% Y 1.15 14% Z 1.50 15% The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a. Which projects have a higher expected return than the firms 11 percent cost of capital

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